Berizzo replaces Martin Lasarte, who was sacked in April after Chile missed out on the finals, which begin in Qatar in November.
The 52-year-old Berizzo began his coaching career in 2007 as an assistant to then Chilean national coach Marcelo Bielsa.
He has since coached Argentinian club Estudiantes, Sevilla and Athletic in Spain and most recently led Paraguay in most unsuccessful bids to qualify for Qatar.
He was handed a four-year contract in Santiago and is expected to get Chile back on track after missing both the 2018 World Cup in Russia and this year’s tournament.
His first games in charge come next month when Chile play South Korea and Tunisia.
“Dear fans of our national football team, we have one coach and that’s Eduardo Berizzo,” said Pablo Milad, president of the Chilean Football Federation. “He knows our football and has a lot of international experience. We wish him the best of luck.”
As a player, Berizzo played for Newell’s Old Boys, Marseille, Atlas, River Plate and Celta de Vigo between 1988 and 2006.
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